An Accredited Education

What is a long call?

Video Transcription

Hi, Casey Jensen again here at OptionsANIMAL. Now let’s talk about options. Maybe you’re brand new to options; we all start that way. What is a long call? Well, a long call means that you are buying, in this case, a call option. What does that give you the right to do? So, quickly, if you’ll look right here, let’s say we buy a September call option, and maybe September has 90 days until this option expires, so, within the next 90 days, I have the right to buy this stock that’s trading at, say, $100, in this case for, say, $105. You get to choose whatever strike price you want, so for this sake, let’s just say $105. You have the right to buy. So that’s a thing to remember when you’re looking at a long call, is you have the right to buy at a fixed price within a set time frame, in this case, 90 days.